Daijiworld Media Network - New Delhi

New Delhi, Mar 13: Congress Rajeev Shukla, a Rajya Sabha member, on Friday raised concerns in the Upper House about the implementation of the crop insurance scheme for farmers, highlighting that insurance companies are failing to provide proper and adequate compensation.

Shukla described the issue as critical, affecting millions of farmers across India. He cited alarming examples from several states. In Maharashtra, compensation after crop damage was reportedly as low as Rs 21 in some accounts, Rs 8 in others, and just Rs 3 in certain cases.

Referring to the Prime Minister’s Crop Insurance Scheme, Shukla emphasized that the program was designed to protect farmers from natural disasters such as drought, floods, hailstorms, and pest attacks. Farmers pay a nominal premium, while the government covers the rest, ensuring financial support during crises to maintain stable incomes.

However, he highlighted failures in Uttar Pradesh’s Bareilly district, where floods destroyed paddy crops. Farmers filed claims, but received minimal compensation—Rs 3.76 in some cases and Rs 2.62 in others. Shukla sarcastically noted that such amounts are insufficient even for basic needs like buying diesel, pesticides, or replanting crops.

The Congress leader also pointed to procedural flaws: delays in crop verification, portal failures, and the “area approach” method, which averages losses across a region. This often results in completely destroyed crops being undervalued if the overall area is deemed normal.

Shukla further criticized the financial model, noting that farmers contribute only 1.5–2% of the premium while the government provides the rest. Insurance companies collect significant premiums, profiting in normal years, but disbursing negligible amounts when farmers actually need support. In some cases, premiums are deducted without proper notice.

He called the system unfair, with farmers and the government bearing the risks while private insurers reap profits. Shukla urged the government to:

• Set clear timelines for claim settlements
• Ensure timely and transparent crop damage surveys
• Conduct assessments at the actual farm level rather than using the area-based approach
• Hold insurance companies accountable to guarantee fair and adequate compensation for farmers.

This intervention highlights ongoing challenges in India’s crop insurance system and the need for reforms to protect farmers’ livelihoods.